Global Health IPO opens today : 10 important things to know about this IPO before investing

10 things about the Global Health IPO

IPO opens today

The company behind the famous healthcare brand Medanta, Global Health Limited, is launching its IPO on 3rd November 2022. But before you subscribe, here are ten essential things to know about the IPO. 

Related - Some IPOs turned multibaggers. Did you invest in them?

1. Important dates

While the IPO opens on 3rd November 2022, the closing date is 7th November 2022. Other tentative dates of the IPO are as follows –

PO opens on 3rd November 2022

2. Price range and minimum investment

The IPO price band is between Rs.319 and Rs.336 per share, having a face value of Rs.2. The minimum bid is for one lot whose size is 44 shares. Thus, the investment required comes to Rs.14,784. The maximum investment is restricted to 13 lots with a total amount of Rs.192,192.

3. Details of the IPO offered

Global Health intends to raise equity capital of about Rs.2206 crores through the IPO. This includes a new equity issue of Rs.500 crore by offering up to 1.57 crore shares. The Offer for Sale (OFS) is worth Rs.1706 crores, which comprises a total of 5.08 crore shares offered by the stakeholders and promoters of the company.

4. IPO allocation

50% of the IPO has been reserved for Qualified Institutional Buyers, while up to 15% is for HNIs. The remaining 35% of the IPO is for retail investors.

5. IPO objective

Global Health aims to direct Rs.375 crores of the IPO-funded money towards its subsidiaries, which will use the proceeds to repay their debts. Other funds from the IPO will be used for other corporate uses.

6. Company details

Global Health offers services in cardiac science and cardiology, oncology, neuroscience, orthopaedics, etc. It ranks among the largest tertiary care providers on bed capacity and revenue parameters. Under Medanta, the company has five operating hospitals.

7. Industry details

Reports suggest that the Indian healthcare delivery sector is expected to grow at a CAGR of 10% to 12%, reaching a valuation of Rs.5 lakh crores. Moreover, with favourable macroeconomic trends, the healthcare delivery market might grow to Rs.8.3 lakh crores by FY26.

8. Promoter details

Dr Naresh Trehan is the promoter of Global Health. The pre-issue promoter stakeholding is 35% which will be diluted to 33% post-issuance through OFS.

9. Financial details

Some of the critical financial details of Global Health are as follows –

critical financial details of Global Health
  • Bed capacity grew at a CAGR of 8% between FY20 and FY22
  • Occupancy grew to 60%
  • EBITDA margins of new hospitals rose and stood at 20%. Overall, EBITDA grew at a CAGR of 55% between FY20 and FY22.

10. Grey Market Premium

Currently, the company's shares are demanding a GMP of Rs.25 per share.

So, know about the IPO so that you know what you are investing in if you subscribe to it. 

Related - Know the difference between an IPO and an NFO

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

The company behind the famous healthcare brand Medanta, Global Health Limited, is launching its IPO on 3rd November 2022. But before you subscribe, here are ten essential things to know about the IPO. 

Related - Some IPOs turned multibaggers. Did you invest in them?

1. Important dates

While the IPO opens on 3rd November 2022, the closing date is 7th November 2022. Other tentative dates of the IPO are as follows –

PO opens on 3rd November 2022

2. Price range and minimum investment

The IPO price band is between Rs.319 and Rs.336 per share, having a face value of Rs.2. The minimum bid is for one lot whose size is 44 shares. Thus, the investment required comes to Rs.14,784. The maximum investment is restricted to 13 lots with a total amount of Rs.192,192.

3. Details of the IPO offered

Global Health intends to raise equity capital of about Rs.2206 crores through the IPO. This includes a new equity issue of Rs.500 crore by offering up to 1.57 crore shares. The Offer for Sale (OFS) is worth Rs.1706 crores, which comprises a total of 5.08 crore shares offered by the stakeholders and promoters of the company.

4. IPO allocation

50% of the IPO has been reserved for Qualified Institutional Buyers, while up to 15% is for HNIs. The remaining 35% of the IPO is for retail investors.

5. IPO objective

Global Health aims to direct Rs.375 crores of the IPO-funded money towards its subsidiaries, which will use the proceeds to repay their debts. Other funds from the IPO will be used for other corporate uses.

6. Company details

Global Health offers services in cardiac science and cardiology, oncology, neuroscience, orthopaedics, etc. It ranks among the largest tertiary care providers on bed capacity and revenue parameters. Under Medanta, the company has five operating hospitals.

7. Industry details

Reports suggest that the Indian healthcare delivery sector is expected to grow at a CAGR of 10% to 12%, reaching a valuation of Rs.5 lakh crores. Moreover, with favourable macroeconomic trends, the healthcare delivery market might grow to Rs.8.3 lakh crores by FY26.

8. Promoter details

Dr Naresh Trehan is the promoter of Global Health. The pre-issue promoter stakeholding is 35% which will be diluted to 33% post-issuance through OFS.

9. Financial details

Some of the critical financial details of Global Health are as follows –

critical financial details of Global Health
  • Bed capacity grew at a CAGR of 8% between FY20 and FY22
  • Occupancy grew to 60%
  • EBITDA margins of new hospitals rose and stood at 20%. Overall, EBITDA grew at a CAGR of 55% between FY20 and FY22.

10. Grey Market Premium

Currently, the company's shares are demanding a GMP of Rs.25 per share.

So, know about the IPO so that you know what you are investing in if you subscribe to it. 

Related - Know the difference between an IPO and an NFO

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

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